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The bill increases transparency and the likelihood that energy-efficient home features will be recognized in appraisals (potentially raising values) but imposes compliance and training burdens on lenders and appraisers that may raise costs, slow transactions, or be passed on to borrowers.
Homebuyers and homeowners with energy-efficient features will have those features considered in appraisals and underwriting, improving the chance of higher appraised values and reducing uncertainty when lenders evaluate such homes.
Borrowers (current and prospective) will be informed of and able to obtain energy reports at no cost upon request, increasing transparency and lowering barriers to including energy information in mortgage applications.
The appraisal industry and related mortgage professionals will receive clearer standards and training on accounting for energy features, which should improve appraisal consistency and professional capacity for valuing energy-related home attributes.
Creditors, lenders, and mortgage providers will face compliance, systems, and training costs to integrate energy reports and new appraisal requirements, and those costs could be passed on to borrowers through higher loan pricing or reduced product availability.
Appraisers will incur required training (including multi-hour courses) and extra administrative work, which could increase appraisal fees and turnaround times, delaying closings and raising costs for borrowers.
Homeowners and borrowers could face inconsistent or unfair valuations if energy reports vary in quality or are applied unevenly across appraisals, creating uncertainty about final loan valuations and potential justice concerns.
Based on analysis of 2 sections of legislative text.
Requires lenders to disclose borrowers' right to provide energy reports, share reports with appraisers (with consent), and require appraisers/underwriting to consider energy features; effective March 1, 2026.
Requires mortgage lenders to give borrowers a written notice telling them they can provide an energy report for their home and that an appraiser will consider information from that report when valuing the property. With borrower consent, lenders must give the home's energy report to the assigned appraiser and update underwriting systems so appraisals may incorporate energy efficiency and renewable-energy features; the main rules take effect March 1, 2026.
Introduced March 27, 2025 by Sean Casten · Last progress March 27, 2025